Associated Banc Corp Purchases New Stake in 3M Company $MMM

Key Points

• Associated Banc Corp opened a new position in 3M, acquiring 11,133 shares valued at about $1.83 million. Institutional investors and hedge funds collectively own 65.25% of the company.
• Analyst views are mixed: 3M has a consensus Hold rating and an average price target of $187.57, while JPMorgan recently raised its target to $210 and maintained an Overweight rating.
• 3M beat quarterly earnings expectations, reporting EPS of $2.50 versus estimates of $2.38, and announced a $6 billion share-repurchase authorization alongside a quarterly dividend of $0.78 per share.

Associated Banc Corp acquired a new stake in 3M Company (NYSE:MMM - Free Report) during the third quarter, according to its most recent Form 13F filing with the SEC. The institutional investor acquired 11,133 shares of the conglomerate's stock, valued at approximately $1,827,000.

Other hedge funds and other institutional investors have also modified their holdings of the company. State Street Corp lifted its position in shares of 3M by 0.4% during the 2nd quarter. State Street Corp now owns 27,828,966 shares of the conglomerate's stock worth $4,505,788,000 after purchasing an additional 105,222 shares during the last quarter. Amundi increased its holdings in 3M by 67.0% in the second quarter. Amundi now owns 4,536,148 shares of the conglomerate's stock valued at $734,448,000 after buying an additional 1,819,178 shares during the last quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC increased its holdings in 3M by 7.4% in the second quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 3,935,534 shares of the conglomerate's stock valued at $637,202,000 after buying an additional 270,458 shares during the last quarter. National Pension Service raised its stake in 3M by 3.6% in the second quarter. National Pension Service now owns 1,401,543 shares of the conglomerate's stock valued at $226,924,000 after buying an additional 48,167 shares in the last quarter. Finally, Fort Washington Investment Advisors Inc. OH raised its stake in 3M by 1.2% in the third quarter. Fort Washington Investment Advisors Inc. OH now owns 376,784 shares of the conglomerate's stock valued at $61,849,000 after buying an additional 4,628 shares in the last quarter. 65.25% of the stock is currently owned by institutional investors and hedge funds.

Wall Street Analyst Weigh In

A number of brokerages have issued reports on MMM. JPMorgan Chase & Co. lifted their price target on 3M from $191.00 to $210.00 and gave the stock an "overweight" rating in a report on Wednesday. HSBC upgraded 3M to a "strong-buy" rating in a report on Thursday, October 22nd. Royal Bank Of Canada raised their target price on 3M from $132.00 to $135.00 and gave the stock an "underperform" rating in a research report on Wednesday, October 21st. The Goldman Sachs Group restated a "buy" rating on shares of 3M in a research note on Wednesday, July 22nd. Finally, Deutsche Bank Aktiengesellschaft reaffirmed a "hold" rating on shares of 3M in a report on Wednesday, October 21st. One investment analyst has rated the stock with a Strong Buy rating, six have issued a Buy rating, eight have given a Hold rating and one has issued a Sell rating to the stock. According to MarketBeat.com, the stock has a consensus rating of "Hold" and an average price target of $187.57.

Trending Headlines about 3M

Here are the key news stories impacting 3M this week:

• Positive Sentiment: 3M agreed to a PFAS personal-injury settlement with a commitment of $5.8 billion in present value through 2034, or up to $7.35 billion in total payments. UBS said it covers about 99% of current claims and costs less than investors had expected, potentially removing a major litigation overhang. Article: 3M settlement removes major PFAS overhang, UBS says
• Positive Sentiment: 3M and Amazon Web Services are expanding work to scale 3M’s optical-connectivity platform for AI-focused data centers. The initiative is expected to create more than 500 jobs and contribute nearly $500 million to the economy, bolstering the company’s exposure to data-center growth. Article: 3M expands AI data center optics push
• Positive Sentiment: The board authorized an additional $6 billion in share repurchases, bringing total availability under its program to $7.5 billion, and declared a quarterly dividend of $0.78 per share. Buybacks and the dividend add to shareholder returns, though the authorization does not guarantee purchases. Article: 3M approves share repurchase authorization and declares dividend
• Positive Sentiment: JPMorgan raised its price target to $210 from $191 and maintained an Overweight rating, signaling a more favorable view of the shares. Article: JPMorgan raises 3M price target
• Negative Sentiment: The settlement remains a substantial cash commitment, and reports note that its final implementation depends on a claimant participation threshold that has not been publicly disclosed. Article: 3M's forever chemicals bill just grew by billions

3M Price Performance

Shares of NYSE:MMM opened at $194.03 on Thursday. The company's fifty day moving average price is $168.68 and its 200 day moving average price is $161.55. 3M Company has a 12 month low of $139.34 and a 12 month high of $194.77. The company has a debt-to-equity ratio of 3.01, a current ratio of 1.41 and a quick ratio of 1.06. The firm has a market capitalization of $100.26 billion, a P/E ratio of 19.96, a P/E/G ratio of 2.31 and a beta of 1.01.

3M (NYSE:MMM - Get Free Report) last released its quarterly earnings data on Tuesday, October 20th. The conglomerate reported $2.50 earnings per share (EPS) for the quarter, beating the consensus estimate of $2.38 by $0.12. The company had revenue of $6.60 billion during the quarter, compared to the consensus estimate of $6.61 billion. 3M had a net margin of 14.01% and a return on equity of 123.11%. 3M's revenue for the quarter was up 1.5% on a year-over-year basis. During the same quarter in the prior year, the firm posted $2.19 earnings per share. As a group, sell-side analysts predict that 3M Company will post 9.14 earnings per share for the current fiscal year.

3M Dividend Announcement

The company also recently announced a quarterly dividend, which will be paid on Friday, December 11th. Investors of record on Friday, November 13th will be given a $0.78 dividend. The ex-dividend date of this dividend is Friday, November 13th. This represents a $3.12 dividend on an annualized basis and a dividend yield of 1.6%. 3M's dividend payout ratio is 46.50%.

3M declared that its board has initiated a share repurchase program on Wednesday, November 4th that permits the company to buy back $6 billion in outstanding shares. This buyback authorization permits the conglomerate to purchase up to 6.6% of its stock through open market purchases. Stock buyback programs are typically an indication that the company's leadership believes its shares are undervalued.

3M Profile

3M is a diversified technology and manufacturing company headquartered in St. Paul, Minnesota. Founded in 1902 as Minnesota Mining and Manufacturing Company, it developed from a mining venture into a global enterprise known for applying materials science and engineering to a broad range of industrial, commercial and consumer applications.

The company develops and manufactures products including adhesives, abrasives, filtration systems, personal protective equipment, medical and dental supplies, electrical and electronic materials, automotive components, reflective materials and workplace safety solutions.

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